FEMA 50% Appraisal

Are you familiar with the FEMA 50% Rule and how it can impact your property? If your home is located in a flood zone and you have experienced significant damage or are planning substantial improvements to your home, you’ll want to continue reading. Below we’ll explain the FEMA 50% Rule in its most basic terms.

Essentially, if you are a homeowner and your property has suffered Substantial Damage or you’re planning Substantial Improvements, you are required to abide by the FEMA 50% Rule. Importantly, this only applies to homes located within a Special Flood Hazard Area (SFHA).

Now what qualifies as Substantial Damage or Substantial Improvements?
Substantial Damage is the restoration or repair of damage of any origin that is necessary to restore a building to its pre-damaged condition, where the costs exceed 50% of the building’s value.
On the other hand, Substantial Improvements include the rehabilitation or remodeling of a building as well as any lateral or vertical additions, where the costs exceed 50% of the building’s value.

When it is determined by the local official that a building in a SFHA will be Substantially Improved or has suffered Substantial Damage, the structure, in every aspect, must be brought into compliance with floodplain management and building code requirements for new construction based on flood zone.

Each local community is different, but most jurisdictions rely first on the county appraiser’s assessed value. Unfortunately, this value represents the prior year and is often significantly lower than the building’s Actual Cash Value. Thankfully, most local officials allow the homeowner to obtain their own appraisal from a local certified appraiser.

That’s where we would like to be of assistance. At South Florida Valuation we take every detail into consideration. Your home is your biggest investment, and we want to help you protect it. Our appraisers are equipped to provide you with an in-depth appraisal, enabling you to determine if your home has suffered substantial damage or is about to undergo substantial improvement. Don’t leave your property’s fate to chance— Act now and schedule your FEMA 50% Appraisal for the ultimate peace of mind!

For more information regarding FEMA renovation and repair rules, check out the Substantial Improvement/Substantial Damage Desk Reference produced by FEMA.